So far, for cannabis investors, 2019 has turned out to be a magical forest of breakouts in new and interesting names, such as Khiron Life Sciences Corp (OTCMKTS:KHRNF). This vertically integrated medical cannabis company focused on Latin America has launched to the upside in recent days, in part spurred by the company’s announcement, along with Dixie Brands Inc. (CSE: DIXI.U), “one of the cannabis industry’s leading consumer packaged goods companies”, that the two companies have signed a binding letter of intent to establish a 50/50 joint venture to introduce a full line of cannabis-infused products to the Latin American market.

According to the release, Dixie will also manufacture and distribute Khiron’s Kuida brand of cannabidiol (CBD)-based cosmeceuticals in the United States, targeting the growing Hispanic population. Note that completion of the deal is subject to TSX Venture Exchange approval.

Khiron Life Sciences Corp (OTCMKTS:KHRNF) trumpets itself as a company that develops cannabis products for medical purposes. It also provides cosmeceutical and nutraceutical products.

The company was founded in 2017 and is headquartered in Toronto, Canada.

According to company materials, “Khiron Life Sciences Corp. is positioned to be the dominant integrated cannabis company in Latin America. Khiron has core operations in Colombia and is fully licensed in the country for the cultivation, production, domestic distribution, and international export of both THC (tetrahydrocannabinol) and CBD (cannabidiol) medical cannabis. In May 2018, Khiron listed on the TSX Venture Exchange, becoming one of the first Colombian-based medical cannabis companies to trade on any exchange globally. Khiron is led by Co-founder and Chief Executive Officer, Alvaro Torres, together with an experienced executive team, and a knowledgeable Board of Directors that includes former President of Mexico, Vicente Fox.”

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As noted above, KHRNF just announced, along with Dixie Brands Inc., that the two companies have signed a binding letter of intent to establish a 50/50 joint venture to introduce a full line of cannabis-infused products to the Latin American market.

Alvaro Torres, Co-founder and CEO of Khiron Life Sciences, stated, “This joint venture is a combination of two companies coming together to bring great brands with highly complementary products, distribution capabilities and expertise. The joint venture gives us important access to expand the reach of our Kuida® cosmeceutical brand into the U.S. market, and by introducing a proven set of product formulations, we can more effectively leverage the infrastructure and relationships we are putting in place across Latin America.”

In all, we’ve witnessed 61% added to share values of the name over the past month of action. Moreover, the name has registered increased average transaction volume recently, with the past month seeing approaching 120% above its longer-run average levels.

Chuck Smith, President and CEO of Dixie Brands, stated, “This joint venture will launch Dixie’s portfolio of brands throughout Latin America and demonstrates the value and scalability of the product portfolio we have developed and marketed over the past nine years. Khiron is the clear leader in the Latin American cannabis space with an excellent operating team and a growing presence across the region. We look forward to aggressively supporting this push into Latin America as Dixie executes against its plan to expand into new international markets and build the leading global CPG cannabis company.”

Now commanding a market cap of $136.23M, KHRNF has about $11.3M in cash on the books, which must be weighed relative to about $1.5M in total current liabilities. The company is pre-revenue at this point. You can bet we will update this one again as new information comes into view. Sign-up for continuing coverage on shares of $KHRNF stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!

Disclosure: we hold no position in $KHRNF, either long or short, and we have not been compensated for this article.

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